5Things About Delaying the Keystone XL Pipeline Decision

The State Department unexpectedly announced Friday afternoon that it will extend indefinitely its review of the Keystone XL pipeline’s National Interest Determination, citing concerns about a Nebraska state court ruling in February invalidating the latest pipeline’s route. The extended review will likely push back any final decision by President Barack Obama on whether to approve Keystone past the midterm elections in November. Pipeline opponents and supporters say it was a political ploy to take pressure off the White House and Democrats this election season.

1The Decision to Delay Could Have Been Made Weeks Ago

Administration officials said back in February that the Nebraska state court ruling throwing Keystone’s route into question would have no impact on the federal review. Keystone supporters and White House officials were dismissive of the ruling by county judge that the state legislature’s law giving Gov. Dave Heineman the authority to approve the route instead of the Nebraska Public Service Commission was unconstitutional. The case was brought by landowners who said their rights were abridged. Pipeline supporters said the decision was made by a lower court, and glossed over the fact that an appeal from Nebraska’s attorney general to the state Supreme Court would probably take months. They also blew off arguments by the landowners’ lawyers that the State Department’s lengthy environmental interest report released in January had reviewed latest pipeline route—one that was now in limbo.

2The Nebraska Decision Is Good for Obama

The Keystone pipeline opened up wide divisions among Democrats heading into the midterm elections. Environmental groups and donors were threatening to keep their wallets closed this fall. The administration needed those organizations, an important Democratic constituency, to mobilize their party’s base voters. However, the pipeline controversy was jeopardizing the re-election of a number of Democratic senators running in red states. Republicans have been using Keystone as a symbol of Mr. Obama and Democrats’ alleged antibusiness policies. The Nebraska court ruling offered the Obama administration an opportunity to delay the Keystone decision—a better political move in 2014 than either rejecting or approving it.

3Environmentalists Call the Delay a Victory

Environmentalists view the delay as a big win that validates their political strategy of playing hardball in elections. The top environmental groups do not think Mr. Obama will ever approve Keystone, even after this year’s midterms. This belief will help drive their activism and contributions going into 2016 races. Green groups have been organizing “permanent” grassroots campaigns in some states, and moving more money into war chests for candidates who support steps aimed at curbing climate change. Environmentally driven donors such as Tom Steyer, a billionaire hedge fund manager who has contributed millions to Democrats, have already said they will continue their policy of withholding donations from Democrats who still embrace energy from fossil fuels.

4The U.S. Needs to Make Up With Canada Soon

The Canadian government, the U.S.’s closest ally, has been publicly embarrassed by the Obama administration’s five-year wait on the Keystone pipeline. Canada’s prime minister’s spokesman laid the latest postponement directly on White House concerns with political fallout from any direct decision, saying, “We are disappointed that politics continue to delay a decision on Keystone XL.” Canadian Gary Doer said in an interview, responding to the administration’s delay: “Do you want oil from Canada, North Dakota and Montana, or do you want it from the Middle East?” The White House mishandled the new delay, he indicated. Some Canadian officials may have had a “heads up” before the U.S. announcement, he said. But, he added, with a major, prolonged issue like Keystone involving close allies, “discussion” is needed, “not a heads up.”

5Mary Landrieu’s New Opponent: Obama

Democratic Sen. Mary Landrieu of Louisiana won’t run away from President Obama as she campaigns for re-election; she will run against him. Ms. Landrieu, among the most vulnerable Democrats facing re-election this year, supports Keystone and several other key oil and gas company-backed policy changes. The new chairman of the Senate Energy and Natural Resources Committee, Sen. Landrieu may find it more advantageous to direct a lot of her campaign against the “anti-oil and gas,” “anti-Keystone,” “anti-Louisiana” White House, while she touts her own support for Louisiana’s booming energy industry. Other red-state Democrats up for re-election, and likely to promote their support of Keystone include Mark Pryor of Arkansas, Mark Begich of Alaska, and Kay Hagan of North Carolina.